Dwarf

A race of beings living underground. Although not particularly small, they were usually thought of as ugly. Dwarves originally generated from the soil, forming as maggots in the flesh of Ymir, the primeval giant, whereupon the gods gave them consciousness and intelligence.

Dwarves were master craftsmen and amazingly skilful smiths who fashioned objects with extraordinary properties, particularly from gold. They created many treasures belonging to the gods, including Thor's hammer Mjollnir, Odin's ring Draupnir and Freyja's famous necklace. Gleipnir, the only fetter that could restrain the wolf Fenrir, was also the work of their hands. Dwarves would sometimes place curses upon treasures, particularly when they were forced to forge them or give them up.

The Encyclopedia of World Mythology ed. Arthur Cotterell

Unlike Elves and Men, the Dwarves are not Children of Ilúvatar; they were created by Aulë the Smith, though Ilúvatar granted them life. Aulë made seven Fathers of the Dwarves, and these slept through many ages until after the Awakening of the Elves. Almost all the Dwarves that appear in Tolkien's works were descended from the eldest of the Seven Fathers, Durin the Deathless.

The first Dwarves were made long ages ago by Aulë the Smith. He had dimly perceived the coming Children of Ilúvatar, and desired to make Children of his own to teach his many skills and arts.
Aulë's work was doomed, though, because he did not have the power to grant independent life to his creations - that power belonged to Ilúvatar alone. When the Dwarves were completed, though, the voice of Ilúvatar spoke to Aulë and agreed to grant them true life, and include them in His plan for Arda. Ilúvatar would not allow the Dwarves to awaken, though, until after the Firstborn (the Elves), and so Aulë set them to sleep far apart from one another, deep underground, until the time came for their awakening.

Aulë made the Dwarves at a time when the World outside Aman still lay under the dominion of Melkor, and so he made them sturdy and hard to survive the dangers and hardships of that time.
In nature, the typical Dwarf is stubborn and secretive. Though they make loyal and good friends, they are also a proud and stern race. They do not suffer grievance or insult, and their enmity is long-lasting. They are said, though, to be quick to learn new skills.

Probably the best known aspect of the Dwarvish character, though, is their strong instinctive skills in the working of metal and stone, no doubt derived from Aulë their maker, the Vala whose province these things were. In ancient times, they were said to have preferred working with copper and iron, though in later days they wrought gold and silver, and the mithril they found in the Mines of Khazad-dûm.

Though they live much longer than Men (usually around 250 years), Dwarves are mortal creatures. What happens after their death, though, is a mystery. The Elves have said that the Dwarves return to the stone from which they were made, but the Dwarves have a different belief.
According to Dwarvish tradition, they are gathered by Mahal (their name for Aulë) in a part of the Halls of Mandos set aside for them. After the end of the World and the Last Battle, they say, they will aid Aulë in the rebuilding of Arda. http://www.glyphweb.com/arda/default.htm

Mainly mountain-dwelling, short, stocky beings, capable of the long lives of many elven people's 1,000+ year lifespans. Known to be highly skilled in metal- and stone-work, and to have great inherent skill with items made of both substances, both weaponry, and mundane (like stone paths, or iron gates, etc). Dwarves often have heavy accents, especially the more common type, found mainly below the mountains of the land, living in tunnel-structured cities of the underground portion of the world of Jashnia:
- In Eastonia, small tribal communities have sought to populate the surface, living amid crevices and hilly lands in or near the mountain ranges of the Capett (north), Suut (east), and Dredge (equatorial).
- In Tearra Rehm, ...
- In Zendelon, ...
- In Lune, ...
- In Realms of Lemire, ...
- In Fantasma, ...
- wiki fantasy roleplay's Jashnia and WFR Games
See also, Dwarven Races and Dwarfin Clans